Category Archives: oil and gas

BC Going to Court After Alberta Restricts Fuel

Let’s get ready to rumblllllllllllle!:

Tensions over the Trans Mountain pipeline increased Thursday with British Columbia announcing plans to launch a lawsuit over new Alberta legislation that could restrict fuel exports to the West Coast.

B.C. Attorney General David Eby said his province will ask the Court of Queen’s Bench in Alberta to declare the legislation unconstitutional on the grounds that one province cannot punish another.

The bill, which allows limits on fuel exports to B.C., was passed by Alberta’s legislature on Wednesday.

If Alberta moves to implement the act, B.C. will apply for an injunction and seek damages, Eby said.

 

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Morneau Eyes Kinder Morgan Pensions

He’s at it again:

Canada’s Finance Minister Bill Morneau on Thursday highlighted the country’s pension funds as possible investors in Kinder Morgan Inc’s (NYSE:KMINews) pipeline expansion, but industry sources were skeptical about attracting new investors.

Morneau on Wednesday raised the prospect of foreign funding, saying “plenty of investors would be interested” if Kinder Morgan Canada (Toronto:KML.TONews) walked away from the project.

“We have very sophisticated Canadian pension funds and institutional investors that have a high level of understanding of how you embark on infrastructure projects and a great deal of experience around the world in bringing those projects to completion,” Morneau told Reuters in an interview.

Morneau declined to say whether the government was in active discussions with potential investors.

 

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Kinder Morgan CEO “Appreciates” That Government Will Compensate Investors

With our money, no doubt:

The CEO of Kinder Morgan Canada Ltd. says he “appreciates” an announcement by Finance Minister Bill Morneau that the government will compensate investors in the proposed Trans Mountain pipeline expansion if “unnecessary delays” cause costs to rise.

Morneau says the government is willing to “provide indemnity” to any investors, be they the project’s original architects or otherwise, to ensure the controversial Alberta-B.C. project is able to proceed.

 

When not being drunk (hat tip: SDA), Justin is finding ways to destroy the economy.

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Alberta Declares Victory in Trans-Mountain Appeal

SEE: fire, fat, out of:

Alberta Premier Rachel Notley is calling a recent court decision on the Trans Mountain pipeline expansion project a definitive victory.

The Federal Court of Appeal on Friday dismissed the B.C. government’s bid to challenge a National Energy Board ruling that allows Kinder Morgan Canada to bypass local bylaws during construction of the pipeline expansion which would triple the amount of crude flowing from Alberta to a port facility in Burnaby, B.C.

The court also ordered B.C. to pay the legal costs.

“Another victory for our economy. Another victory for our climate plan. Another victory for the pipeline and another victory for all Albertans and all Canadians,” Notley said Monday at an unrelated transit announcement.

The federal government approved the pipeline expansion in 2016, but the project faces significant opposition in B.C. Thousands of people have rallied in protest and the provincial government has raised concerns about the pipeline’s possible environmental and economic impact.

B.C. Environment Minister George Heyman said the government is disappointed by the court’s decision and suggested it undermines the local permitting process.

“The provincial government has steadfastly assured administrative fairness, while we defend B.C.’s interests by insisting on high standards for environmental protection and First Nations consultations,” he said in a statement Monday.

“Our government will continue to explore other legal ways to defend the interests of British Columbians against this unnecessary project.”

 

 

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The Prophet’s Bankers

One wonders what future historians will write about Saudi Arabia. Will there even be a future historians, or at least Western historians? Saudi Arabia has already changed the world enormously and will continue to do so – perhaps it might even oversee the downfall of Christian civilisation. There are recent signs Saudi might be moderating, but this may be simple tactics considering the proposed $2 trillion flotation of oil giant ARAMCO on London and New York markets.

h/t CS

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Article: “Canada to watch from the sidelines amid ‘extraordinary times’ in global energy markets”

Read the whole thing:

Two major trends are unfolding in global oil and gas markets, but Canada seems unable to take advantage of the first one, and is already an unfortunate casualty of the other, says a new report.

First, the world’s energy demand will rise the equivalent of China and India’s current energy consumption over the next three decades — but Canada has limited direct conduits to connect those energy-hungry markets to its store of the world’s third-largest oil reserves.

The second development, which has already dented the Canadian oilpatch, is the rise of U.S. tight oil and gas that is taking dollars and focus away from the Western Canadian industry.

The global energy markets are in the midst of “extraordinary times”, writes Fatih Birol, executive director at the International Energy Agency in its annual World Energy Outlook, launched in Paris on Tuesday.

The benchmark report notes that with renewable energy technologies nipping at the heels of oil, natural gas and coal and a global push by policymakers to cut carbon emissions, juxtaposed with near-insatiable demand from a global population that will hit 9 billion within a few decades and the rise of the U.S. as the world’s largest oil and gas producer, the energy sector is experiencing disruptive times.

Amid these upheavals, Canada will likely remain a minor actor, its global plans dashed partially through self-restraint and rules, and also by its next-door neighbour who is upending global markets and disrupting Canada’s plans to export oil and gas in the process.

 

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ISIS’ Oil Revenue Falling

Back to child-rape and museum-destroying for these guys:

The falling oil prices that are devastating Canada’s economy are also hurting ISIL, but it’s unclear if the commodity’s decline will spell an end to the murderous terrorist group that’s behind the Paris attacks.

“Operating in large swathes of territory in eastern Syria and western and northern Iraq allows ISIL to control numerous oilfields from which it continues to extract oil for its own use, its own refining and for onward sale or swap to local and regional markets,” according to the international Financial Action Task Force (FATF), of which Canada is a member.

In a February report, the FATF estimated that ISIL was selling crude at source for a deeply discounted $25-$30 per barrel to middlemen, who then marked it up to $60-$100 per barrel (bbl).

“We note that during the preparation of this report, there has been a substantial decline in global crude oil prices (from approximately $80USD/bbl to $50USD/bbl), and so the price at which ISIL sells crude oil (and the revenue generated from the sale of crude oil) has likely declined as well,” the report said.

Let’s not forget Russia’s hand in this:

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Saudi Arabia Won’t Limit Oil Production

No spat with Iran gets in the way of the cash!

Saudi Arabian Oil Minister Ali al-Naimi said the kingdom, the world’s top crude exporter, does not limit its output and has the capacity to meet additional demand, state television Al Ekhbariya reported on Wednesday.

“The increase in production depends on … the demand of the customers. We meet our customers’ demand, there is no longer a limit to production, as long as there is demand, we have the ability to meet demand,” Naimi said.

The Wall Street Journal, which reported the same comments as Al Ekhbariya, also quoted Naimi as saying Saudi Arabia’s oil policy was “reliable” and would not change. He has made similar comments in the past when asked about plans to boost production.

On Monday, Saudi Arabia, its finances hit by low oil prices, announced plans to shrink a record state budget deficit with spending cuts, reforms to energy subsidies and a drive to raise revenues from taxes and privatisation.

Saudi Arabia’s planned cuts in spending and energy subsidies signal the kingdom is bracing for a prolonged period of low oil prices which this month hit their lowest levels since 2004.

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Jerry Brown Asked State Workers to Look For Gas and Oil On Family Ranch

Gov. Jerry Brown last year directed state oil and gas regulators to research, map and report back on any mining and oil drilling history and “potential for future oil and gas activity” at the Brown family’s private land in Northern California, state records show.

After a phone call from the governor and follow-up requests from his aides, senior staffers in the state’s oil and gas regulatory agency over at least two days produced a 51-page historical report and geological assessment, plus a personalized satellite-imaged geological and oil and gas drilling map for the area around Brown’s family ranchland near the town of Williams.

State regulators labeled the map they did for Brown “Oil and Gas Potential In West Colusa County,” and “JB_Ranch,” referring to the Brown family land in Colusa County.

Ultimately, the regulators told the governor, prospects were “very low” for any commercial drilling or mining at the 2,700-acre property, which has been in Brown’s family for more than a century. …

Brown spokesman Evan Westrup declined to discuss the work for the governor, referring the AP to California’s Division of Oil, Gas and Geothermal Resources. That agency said the work was a legal and proper use of public resources — and no more than the general public would get. But oil industry experts said they could not recall a similar example of anyone getting that kind of state work done for private property.

Brown’s request to state regulators amounted to the governor using state workers as “his own private oil prospecting team,” said Hollin Kretzmann, a staff attorney for the Center for Biological Diversity.

The work on the Brown family ranch “is especially outrageous given his administration’s failure to prevent oil companies from polluting California’s underground water,” Kretzmann said, referring to the oil agency’s acknowledgments to federal environmental regulators that it regularly fell short in enforcing federal law on oilfield pollution.

Brown’s request to oil regulators points to the complex way that the governor, an internationally known advocate of renewable energy, approaches oil and gas issues in his own state. While spearheading ambitious programs to curb the use of climate-changing fossil fuels, Brown also has sought to spur oil production in California, the country’s No. 3 oil-producing state.

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Oil Opponents Cheer Industry Stall

Not enough people freeze during winter:

Opponents of Canada’s oil industry are celebrating this week over news they see as vindication of a pipeline-fighting strategy that began in the United States with Keystone XL.

Their burst of enthusiasm was prompted by news that Shell was shuttering an 80,000-barrel-a-day project — and specifically citing the lack of pipeline infrastructure as part of the reason.

That announcement prompted a congratulatory message from a political activist who began organizing Nebraska ranchers opposed to Keystone XL five years ago.

Jane Kleeb emailed ranchers Wednesday to say their work against the Alberta-to-Texas project was having a ripple effect across the continent, with the expansion of the Alberta oilsands now in doubt.

“Turns out fighting Keystone XL with all the might of small and large groups in U.S.A. and in Canada is working,” Kleeb wrote.

“Not only to stop Keystone XL but to stop the tarsands expansion.”

Kleeb helped organize the first of several major fights against export pipelines from the land-locked oilsands, with that so-far-successful stalling effort against Keystone XL now being replicated in protest efforts against different pipelines in Canada.

But advocates for new oil infrastructure have been able to parry their logic in recent years. They’ve pointed to the ongoing surge in Canadian production, the increased exports, and the dramatic rise in oil-by-rail which actually pollutes far more than pipelines as proof the pipeline-fighting was counter-productive.

The timing of this week’s announcement, however, made Greg Muttitt appear like a fortune-teller.

Shell’s cancellation notice came just hours after Muttitt released a 40-page report that predicted the growth of Alberta’s oilsands would be stalled — and the cause would be a lack of pipelines.

His report for the anti-oilsands group Oil Change International had offered a three-part conclusion: pipelines are almost full; rail is too expensive to justify new projects; and oilsands expansion is about to stall.

This is good news, according to his group.

(Sidebar: his group is funded by the Rockefeller Brothers Fund and the Tides Foundation.)

 

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Russia and Iran Moving to Corner the Mideast Oil Supply

It looks like Vladimir Putin and the ayatollahs are preparing to corner the world’s oil supply – literally.

Last May I wrote on this site that Iran was in the process of surrounding the Saudi/Wahhabi oil reserves, along with those of the other Sunni Gulf petro-states.  I added that, “Iran’s strategy to strangle Saudi/Wahhabi oil production also dovetails with Putin’s interests.  As the ruler of the second largest exporter of oil, he would be delighted to see the Kingdom’s production eliminated or severely curtailed and global prices soar to unseen levels.  No wonder he is so overtly supporting Iran.”

 

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